Tennessee Real Estate Practice Exam

What allows TREC to investigate licensee activities?

1. Judicial Powers

2. Executive Orders

3. Administrative Powers

4. Legislative Actions

The correct answer is: Judicial Powers

The correct answer is that TREC, which stands for the Tennessee Real Estate Commission, is empowered to investigate licensee activities through its administrative powers. These powers are granted by the state legislature, allowing TREC to create and enforce regulations within the real estate industry. TREC's role is to ensure compliance with licensing laws and to protect public interest by monitoring the activities of real estate professionals in Tennessee. Judicial powers pertain to the authority of courts to interpret laws and make decisions in legal disputes, while executive orders are directives issued by the governor or other executives, not applicable to TREC’s function. Legislative actions involve the creation of laws by the state legislature and do not directly govern how TREC conducts its investigations. Hence, it is through its administrative powers that TREC has the authority to investigate and regulate real estate licensees effectively.